Leader of the Opposition V.D. Satheesan said the United Democratic Front’s (UDF) fight to fend off the Centre’s trespasses on fiscal federalism would be independent of the Communist Party of India (Marxist) [CPI(M)].
He said reckless borrowing by the Kerala Infrastructure Investment Fund Board (KIIFB) and Kerala Social Security Pensions Limited (KSSPL) from the open financial market had exacerbated the State’s fiscal deficit.
Mr. Satheesan said the UDF had repeatedly warned the Left Democratic Front (LDF) that the Centre would only deem the borrowings by State-owned special purpose vehicles within Budget borrowings.
Mr. Satheesan said the LDF sought to ignore the Fiscal Responsibility and Budget Management Act provision that the difference between a State’s total revenue and total expenditure in a financial year should be a maximum of 3% or less. He said the LDF disparaged the office of the Comptroller and Auditor General (CAG) for pointing out that rash borrowings, plummeting tax collection, and mounting debt would mar the State’s macroeconomic stability.
‘Enumerate schemes’
Mr. Satheesan said the UDF would not allow the LDF government to use the Centre’s financial embargo on Kerala as a fig leaf to hide its economic mismanagement and lax tax administration. “Centre’s financial embargo is merely one reason for the State’s financial crisis,” he said. Mr. Satheesan demanded that the government enumerate the schemes the Centre has deprived funds of.
“The LDF has pussyfooted around the UDF’s questions regarding Kerala’s poor finances. Instead, Chief Minister Pinarayi Vijayan has repeatedly portrayed persons who expressed dissent with the State’s financial policies as mentally unsound,” he added.
